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TMI Blog2011 (4) TMI 1211X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of the return. Learned counsel for the assessee submitted the facts that the assessee is a Hindu undivided family getting income from share in a partnership firm and other sources. After assessment and appeals were finalised, the proceedings had concluded finally by an order under section 254 of the Income-tax Act, 1961 dated March 31, 2006. However, due to an audit objection, the learned Assessing Officer initiated rectification proceedings under section 154, on the grounds that interest under section 234A was charged less. The interest under section 234A was rightly charged till the payment of self-assessment tax under section 140A. Since there was delay in filing of the return as a result of the search and seizure operations and se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned Commissioner of Income-tax (Appeals) reduced its credence to the fact that even if return was filed prior to having paid tax was not the criteria as held by the judicial pronouncement. He perused the order under section 154 of the Assessing Officer wherein it has been clearly mentioned that the charging of interest under section 234A commenced from November, 1994 to March, 1996 when return was filed had already been claimed was again recomputed when the refund voucher had been issued on June 15, 2006 amounting to Rs. 47,569. This resulted in approximately Rs. 30,000 of interest which either the Department would have levied or the assessee would have paid but was not to be charged at all in view of the simple proposition that the interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the material available on record. On our careful consideration of the facts, we are inclined to hold that ratio of analysis on the decision in the case of Dr. Prannoy Roy v. CIT [2002] 254 ITR 755 (Delhi), the interest to be levied under section 234A was not to penalise or punishing for delayed submission of return. It was compensatory in nature to compensate the Revenue in order to avoid it from being deprived of the payment of self-assessment tax which is paid prior to filing of the return. If a return has been belatedly filed the assessee has to undergo levy of interest under section 271(1)(a) till such time the return is filed. These facts are undisputed in so far as the learned Commissioner of Income-tax (Appeals) insisted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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